Md. Code, Real Property §§ 11-101 et seq. (Maryland Condominium Act); HB 848 (2023)
Law changed after Surfside — new requirements apply
Maryland's HB 848 (2023) expanded reserve study requirements for condominiums following the Surfside collapse, requiring periodic professional reserve studies and disclosure of findings to owners.
Yes
Reserve study required for condominiums; study must be updated every 5 years per 2023 legislation
None
No statutory minimum funding percentage; board must follow the reserve study's recommended funding plan
Yes
Reserve study results and funding status must be disclosed to unit owners annually as part of the budget process.
Yes
New law passed after June 2021
Reserve study results and funding status must be disclosed to unit owners annually as part of the budget process.
Fannie Mae requires HOA to allocate at least 10% of assessments to reserves or demonstrate a 10% funding ratio. FHA requires similar. Low reserve funding can block unit sales and refinancing.
Fannie Mae requirement
Minimum 10% of assessments allocated to reserves, or a demonstrated 10% funding ratio. Associations below this threshold may face loan-level pricing adjustments or deal failure.
FHA requirement
Similar 10% minimum allocation. FHA-backed financing unavailable for units in HOAs that do not meet the threshold, reducing the buyer pool and depressing values.
LotWize helps self-managed HOA boards stay on top of reserve contributions, annual budget preparation, and state-mandated reserve planning — without hiring a property management company.
Start 14-Day Free TrialThis page provides general legal information about Maryland HOA reserve requirements only — not legal advice. Reserve laws vary by community type (planned community vs. condominium) and change frequently. Always consult a licensed Maryland HOA attorney and review your governing documents for advice specific to your situation. Statute citations accurate as of 2026.